10 things to include in a business plan
Tasks, to-do lists, meetings, and more. Amidst that rush, the idea of writing a business plan—much less following a business plan template—often feels time-consuming and intimidating. In fact, a wealth of data now exists on the difference a written business plan makes. Especially for small or growing companies. Bplans worked with the University of Oregon to compile and analyze research around the benefits of business planning. For sources and links, see footnotes at the bottom of this article.
Start-up business plan: Top 10 tips
You may be wondering why you need a plan in the first place. After all, you have a clear idea in your mind about what you want to achieve. You know the market, you have the necessary skills. So why do you need a plan? But these 10 steps will help you create the perfect business plan. This is where you describe your company and the product or service that it will sell. Try to describe the goal and mission of your business in just a couple of sentences.
Work hard at this and try to make it memorable. Do you have a clear idea of the type of people or businesses who will buy your product or service?
If not, think carefully until you do. This is one of the first questions any investor will ask you about your business plan. Have your answers ready:. You need to identify the people who will buy from you. Think about the following:. Successful businesses think big.
So write down the possible opportunities for your business as it grows. How will people find you online? Will you need salespeople? If not, how will you convince people to buy from you? As the business grows, is there scope for a bricks-and-mortar retail outlet? What other opportunities will you have if your business grows as planned? Every business has competition.
Be thorough, and list all your existing and potential competitors:. That last point is important. You need to explain how your business will differentiate itself from all the others. That might be based on price, service, quality, range or value. Make sure you spell it out. All business plans should contain some financial information. This should include the overall costs of setting up your business.
For example:. Good accounting software will help you create a draft financial model. Put your vision to one side for a moment.
What are the daily tasks that need to be done when running the business? Include all business processes such as manufacture and packaging. Try to cover all departments too, including sales and customer service. This is one of the most important factors. How will you find people whose skills complement yours? And how will you convince them to work for you?
Also think about who you want as your business advisors. You'll need people you can trust, to guide and mentor you at times when you need it. Keep it simple. If you find yourself getting carried away while writing, stop and take a break.
Shorter is better. The core of a good business plan should be just a few pages long. As you write your business plan , keep in mind your strengths — and also any areas for improvement. This will help you construct a plan that makes the most of your abilities, while still being realistic. That's more likely to convince investors that you're serious. Your business plan is a roadmap for your business — but it's not set in stone.
Review it at least once a year and make changes if necessary. Above all, keep getting feedback from your advisors — official and unofficial ones. With their help, you'll create the perfect business plan that takes you where you want to go.
You're on the site. How to create the perfect business plan in 10 steps Small Business Guides 6 min read. Every business needs a plan. Your business plan will keep you focused and help convince investors to lend you money. But how do you write the perfect business plan? Here are 10 steps to help you get it right. Why do you need a business plan? There are many good reasons. Here are just a few of them: To clarify your ideas Writing something down gives it structure and substance. Your ideas will be clearer on paper than in your head.
To discover and solve problems The business idea you have in mind may have some holes — you might not have covered everything. This will become much more apparent when your words are on the page. To get feedback from others A properly written business plan can be shared with trusted people to get their advice. A written plan will provide that proof. To guide you as your business grows A good business plan will keep you on track and focused, even as day-to-day work becomes a distraction.
The executive summary This is where you describe your company and the product or service that it will sell. Who are your customers? Have your answers ready: Know whether your customers will be consumers or businesses. If they are businesses, who will you target within those companies? Determine whether you'll have regular clients or one-off buyers.
Think about the following: Demographics — such as age, gender and social status. Firmographics — this applies when selling to businesses. Firmographics includes size of the company, revenue of the company and services or products of the company. Location — perhaps a specific area, town, or even country. Groups — such as people with shared interests or habits. The better you evaluate your target audience, the more comprehensive your business plan will be. What are your opportunities? Understand the competition Every business has competition.
Be thorough, and list all your existing and potential competitors: Who are your direct competitors — those selling the same products as you? Who are your indirect competitors — those whose market overlaps yours? What will prevent other companies competing with you — what are the barriers to entry? What is your USP unique selling proposition? Build a simple financial plan All business plans should contain some financial information.
For example: Cost to make or buy products. Costs for labour and manufacture, including raw materials. Staff costs, especially for service businesses. Distribution and marketing costs. Fixed and variable overheads. Positioning — how does your product or service fit into the market?
Promotion — what channels will you use to attract and communicate with customers? Profit — how much do you expect to make per item sold? Place — what are your sales outlets? Plan your operations Put your vision to one side for a moment. Get the right people This is one of the most important factors. Simplicity is the key Keep it simple. Plan your business around your strengths As you write your business plan , keep in mind your strengths — and also any areas for improvement.
Learn more. Xero is easy-to-use online accounting software.
Market Analysis. Products and Services.
This guide will show you how to get your plan done step-by-step without any of the complexity or frustration. There are a lot more details and instructions for each step later in this guide. Click the titles below to immediately jump to each section.
Business plans are never foolproof. While acknowledging that any business plan created in only a couple of days is going to be a tad dodgy, you still want to give your plan its best chance.
In this edited excerpt, the authors briefly describe just what your business plan should contain, how long it should be and how to know if it's time to write it. A business plan is a written description of the future of your business. It's a document that tells the story of what you plan to do and how you plan to do it.
10 Things Not to Do with Your Business Plan
Note: I originally posted this yesterday on gust. This seems like a good point to summarize here what I look for in a business plan. Glasses on paper image from homepage courtesy of Shutterstock. Follow him on Twitter Timberry. What Makes a Successful Business Plan?
Writing a Business Plan? Do These 5 Things First
When you're first getting serious about starting a business, the first thing you should do is write a business plan. Business plans serve several key functions that make them indispensable for successfully launching a new company. Not only do they serve as a roadmap to guide you in the early days of your business, but they also serve as an opportunity to research market conditions, competitors and potential pitfalls you might not be aware of. Business plans are both an analytical and planning tool, two components that are essential for getting a new business off the ground. This guide offers you key insights into how to create a high-quality business plan that will serve your business now and in the future. Editor's note: Looking for information on creating a custom business plan? Use the questionnaire below and our vendor partners will contact you to provide you with the information you need. As with most ideas, the best way to execute them is to have a plan.
You may be wondering why you need a plan in the first place. After all, you have a clear idea in your mind about what you want to achieve.
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Top 10 Components of a Good Business Plan
Knowing what to include in your business plan is half the battle. From there, it all comes down to execution. Regardless of how you get started, the best business plans always include the following five things:. This is your opportunity to put your business concept into words. In this section, you can answer questions such as:. The overview will serve as the jumping off point for the rest of your business plan. In this section, you will list all your product and service offerings. This gives you the chance to learn more about your lineup, which could lead you to make some very important decisions such as eliminating offerings. Along with a detailed list of products and services, it is essential to focus on the competitive advantages of each. What makes your widget better than those provided by the competition? Why is your service going to succeed when there are so many others offering the same thing? A competitive advantage is nothing more than the features that set your product or service apart. This is where your marketing strategy comes into play. Just the same as many parts of your business plan, your marketing strategy is likely to change as your organization grows. For example, you may not spend much time on social media and content marketing in the early days.
How to write a business plan (template): 10 steps, 5 tips, and examples to guide you
Writing a business plan can seem daunting if you've never done it before. However, it's something you can't afford to put off or ignore. Having a sound business plan is crucial to the survival and development of your business. Alan Gleeson explains how to get it right. The starting point for any business plan is audience. Who is going to read it? What is the purpose of the plan - is it to secure funding?
